BUDGET 2017 – Our Indian economy has been growing at a rapid pace with a registered GDP growth of around 7.3 percent. The momentum however was interrupted with the sudden demonetisation announcement by the government. This has led the IMF to cut India’s growth estimate to 6.6 percent from 7.6 percent.
Impact of demonetisation on organised players has been marginal. However, this move has hindered the day to day operations of unorganised transportation and logistics players resulting in short term disruption in the supply chain. So is the case with the warehousing sector, where labourers were earlier paid in cash, the move has however called for advancement in technology and induced people to move towards digital payments. We expect business disruption to be temporary and the situation to normalize in the coming 2 to 3 quarters. In fact, the funds accumulated would mostly be used to boost infrastructure.
Bearing in mind this economic situation, all eyes are now on the upcoming Union Budget, eagerly awaiting for announcements that bring some cheer. To realise the goal of a cashless economy, we anticipate some definitive SOPs and tax rebates for e-payments. Rationalising indirect taxes and charges levied for making e-payments and making it lucrative for corporate as well to operate digitally, could help realise the vision of financial inclusion. READ MORE